In every simple contract, the price which is paid to purchase a promise is called

In every simple contract, the price which is paid to purchase a promise is called

Answer Details

In every simple contract, the price which is paid to purchase a promise is called consideration. Consideration is a legal term used to describe something of value (often money) that is given in exchange for a promise or performance. It is an essential element of a contract because it represents the bargained-for exchange between the parties. In other words, it is the benefit that each party receives or expects to receive from the contract.